Newcastle's Freddie Woodman and Adam Armstrong both started as the Young Lions - who have won the tournament for the last two years - came from behind to beat the Auld Enemy and set up a meeting with Mexico on Saturday.
Goalkeeper Woodman was left with no chance as the Tartan Army went in front on the half-hour mark through Celtic's Michael Johnston, who ran half the length of the pitch before finishing well from inside the box.
But England came out fighting in the second half and, after Armstrong sent a header over the bar two minutes after the restart, Everton's Callum Connolly levelled the scores before Arsenal's Edward Nketiah scored twice.
Woodman played the full match while Armstrong - whose performances throughout the tournament have been highlighted by coach Aidy Boothroyd - was replaced by Chelsea's Tammy Abraham in the 79th minute.
Both Newcastle players were part of the England side that won the FIFA Under-20 World Cup last summer, and will now be looking to claim more silverware for their country this weekend.